Global ocean freight rates see slight uptick in September 2023: XSI

By the end of Q3, the global XSI had dropped by 16.5 per cent compared to the previous quarter, suggesting that carriers, especially those in long-term markets, will likely report lower freight rates for a challenging Q3.

In the European sector, the imports sub-index rose by 1.8 per cent to 182 points in September, despite being down by 59.3 per cent year-on-year (YoY). As shippers prepare for the major tendering season, this boost comes as a relief amidst the continuous decline in the XSI. On the other hand, the European exports index saw a dip of 2.2 per cent, reaching its lowest point at 183.9 since October 2021, as per Xeneta.

The situation in the US was less optimistic. The XSI for US imports plunged to its lowest since June 2021 at 192.4 points but still remains the highest sub-index. As spot rates are rising amid falling long-term rates, shippers are advised to consider securing new contracts. Conversely, the US exports XSI experienced a minor decline, although its YoY decrease is notably less severe compared to other indices, indicating its historically steadier rates.

In the Far East, which boasts the world's largest trade, the export index grew by 1.4 per cent to 164.1 points in September, marking an end to thirteen consecutive months of declines. However, the import index into the region fell by 1.5 per cent to 1160 points, erasing almost all gains from the last two and a half years. The last time long-term contract rates into the Far East were this low was in January 2021. However, carriers had managed to boost the index by 35.7 points by February 2021, owing to soaring spot rates.

Fibre2Fashion News Desk (DP)